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Starbucks' Big Missed Opportunity

Starbucks stores have traditionally been both an individual workhaven and a meeting place for professionals. However, with limited seating, uncomfortable chairs, an often loud environment, and limited outlets, Starbucks is not in the business of providing their customers a coworking location. However, they should be.

Coworking is a trend that is growing in strength and revenue for companies such as Regus. Professionals are not only reporting improved performance, creativity and self-confidence in these workspaces, they are reporting that they are feeling healthier in them as well. Coworking spaces provide not only desk areas for individuals to work at, but often meeting spaces, copier/printer services, and more. Cafe Inc, a Minneapolis-based startup, joins a growing trend nationally of “proworking” locations - coworking locations that provide additional amenities such as a lounge, cafe, and coffee shop area alongside traditional coworking amenities (photos).

Most Starbucks stores as currently constructed do not lend themselves to coworking or proworking from their customers. However, Starbucks has shown an interest in branching into the “cafe” space as they continue to expand their food offerings. Starbucks also already offers limited lounge areas in many of their locations. Having stores that have traditional seating areas as they exist now, but also premium spaces where Starbucks could upsell professional coworking services, especially on a day pass basis, can meet a market need that is currently going largely unfulfilled. Many current Starbucks locations could not support this model, requiring either new locations to be built with this in mind, or retrofitting existing locations (one’s that are not standalone where accompanying space could be acquired). Starbucks has shown a willingness to tweak their brand and innovate of late, and this is an opportunity for them to become even more ingrained in their customers’ daily lives. Workers who show a willingness, at the spur of the moment (or even planned in advance) to pay to have their business meeting in private, or use a secured wifi in a more private, comfortable setting for their own work, also would be likely to buy more beverages and food from the Starbucks store adjacent to their short-term professional work area. Shouldn’t Starbucks be in the business of meeting their customers’ needs in a way that also maximizes Starbucks’ potential profit? If they don’t, I believe other businesses will step into their place and not only cement a missed opportunity for Starbucks, but slowly start to erode at portions of their core business.

Professionals already are going into Starbucks to conduct business and to work - and Starbucks wants that, to a point. Starbucks should consider embracing what their customers are already doing and better execute at profiting off of it by providing proworking services in the not too distant future.